Can we keep our cars and small savings if we file chapter 7 bankruptcy? 8 Answers as of June 11, 2013

We have about $16k in collection & credit card debt, and about $5k-$5,500 in "savings". I am unemployed (collecting unemployment) with 2 kids aged 2yrs old. We are 40yrs old renters with a used car and used minivan both over 6 yrs old. The $5k is for emergency and help with bills when unemployment runs out or until I can find work. $9k of our debt is delinquent and the other $7k could go delinquent soon. We are living check to check and want to file for Chapter 7 bankruptcy. Oh, part of the savings will be used to pay for filing the bankruptcy. Will we be able to keep our cash and both cars? Will we have to sell any furniture or clothes? And in NJ about how much does filing ch.7 cost?

You need to sit down with an attorney and fill out all of the bankruptcy paperwork. They will explain exemptions and what you can keep. Most attorneys talk to you for free. Almost never do you have to sale furniture or clothes. I am unfamiliar with NJ fees. We charge $1,541.00 for a chapter 7.

Whether you can keep cash, cars or other assets depends on the "exemptions" available to you in the state in which you live. You should seek guidance from a local bankruptcy attorney to explore your options.

What assets you can keep depends on which state's exemption laws apply in your case and, of course, what those exemptions are. Exemption laws are based on the state where you resided for the 2 years prior to filing your bankruptcy case or, if you lived in more than 1 state during that period, in the state where you resided for the greater part of the 180 days prior to that 2 year period.

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